Orange County Grading Permit Bond
Specific counties in California mandates businesses to file for a grading permit bond before successfully procuring a building permit. The bond ensures the applicant or contractor to perform grading works that meet their fixed city standards and regulations. It is used to secure the public from damages.
What is a Grading Permit?
In any construction process, earthworks such as land grading and excavation are one of the initial steps. Earth grading is generally involved in any project building or renovation. It generally refers to any type of earthworks. The applicant or property owner is required to file for a Grading permit for regulation, security, and protection. Grading bond requirements and guidelines, unlike most bond types, depending on the city or county instead of depending on the state.
What is the Orange County Grading Bond?
Orange County has their own threshold of what constitutes grading, improvement, and other earthworks. However, it is generally put in place to guarantee that principals or contractors comply with their specified laws, codes, rules, and regulations when performing grading work. By agreeing to the bond, the applicant is obliged to pay compensation to Orange County equal to the financial losses resulted from the failure of complying with their laws.
How does it work?
For businesses to activate their license, they must first purchase and file a Grading and Improvement Bond with the County of Orange. The surety bond provider that issues the County of Orange Grading and Improvement bond must be certified by the California Department of Insurance. The parties in the agreement are typically the Principal (property owner), Obligee (Orange County), and Surety/Bond Company or Obligor (surety bond provider/insurance).
Under the bond, the Principal or business owner agrees to provide compensation to the Obligee should they fail to comply with terms and conditions. The role of the Obligor is to guarantee that the compensation takes place. The Obligor will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Obligor.
The Obligor is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the businesse's responsibility for their dealings.
How much does it cost?
Depending on the business owner’s experience, credit score, and license history, the County of Orange Grading bond may cost between 1.5% and 7.5% of the total bond amount.
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How can I apply for this bond?
At Surety Bond Authority, we are dedicated to helping you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.
In the assessment phase, our underwriter will need the following information:
- Nature of business
- Credit score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time!